Are Shelter Infra Projects Ltd latest results good or bad?

The latest financial results for Shelter Infra Projects Ltd indicate a challenging operational environment. In Q2 FY26, the company reported a net profit of -₹0.10 crores, a shift from a profit of ₹0.13 crores in the previous quarter (Q1 FY26). Net sales also experienced a decline, totaling ₹0.53 crores, which reflects a sequential decrease of 10.17% from ₹0.59 crores in Q1 FY26. This trend of declining sales has persisted, with year-on-year sales down 11.67% from ₹0.60 crores in Q2 FY25. The operating margin has notably worsened, standing at -24.53% in Q2 FY26 compared to a positive 22.03% in Q1 FY26. This indicates significant operational challenges and cost control issues, as the operating profit before depreciation, interest, and tax (PBDIT) fell to -₹0.13 crores from a positive ₹0.13 crores in the previous quarter. The profit after tax (PAT) margin also deteriorated, collapsing to -18.87% from a positive 22.03%. The company's return on equity (ROE) is reported at 2.31%, which is below industry standards, highlighting concerns regarding capital efficiency. Additionally, the financial health of the company appears precarious, with a high debt-to-equity ratio of 2.60 times and substantial current liabilities of ₹28.81 crores against shareholder funds of ₹3.89 crores. Overall, the financial data suggests that Shelter Infra Projects Ltd is facing significant operational and financial challenges, with a consistent pattern of declining revenues and margins. The company has seen an adjustment in its evaluation, reflecting the deteriorating fundamentals observed in recent quarters. Investors may need to closely monitor upcoming results for any signs of stabilization or improvement in performance metrics.